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Identification of factors affecting competitive tension in the domestic air transport market in Turkey1

Mehmet Yasar
Mehmet Yasar
 and 
Ender Gerede
Ender Gerede
   | May 26, 2020
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Article Category: Empirical Paper
Published Online: May 26, 2020
Page range: 118 - 139
Received: Nov 07, 2019
Accepted: Mar 20, 2020
DOI: https://doi.org/10.2478/ijme-2020-0009
Keywords
© 2020 Mehmet Yasar et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Figure 1

Competitive interaction model.Source: Chen and Miller, 2012, p. 71.
Competitive interaction model.Source: Chen and Miller, 2012, p. 71.

Figure 2

Interfirm rivalry model.Source: Chen, 1996, p. 111.
Interfirm rivalry model.Source: Chen, 1996, p. 111.

Figure 3

Research model.
Research model.

Simulation of competitive asymmetry

Firms Most important rival?
Focal Rival Yes No Value
Firm A Firm B ✓ 1
Firm A Firm C ✗ 0
Firm B Firm A ✗ 0
Firm B Firm C ✓ 1
Firm C Firm A ✓ 1
Firm C Firm B ✗ 0

Mean values, standard deviations, and correlations

Variables Mean Standard deviations 1 2 3 4 5 6 7
[1] MC 0.078 0.132 1 0.781** 0.878** 0.798** 0.722** 0.629** 0.705**
[2] RS 0.099 0.161 0.781** 1 0.788** 0.515** 0.494** 0.487** 0.548**
[3] MCT 0.028 0.083 0.878** 0.788** 1 0.586** 0.568** 0.403** 0.469**
[4] CA 0.170 0.377 0.798** 0.515** 0.586** 1 0.616** 0.557** 0.596**
[5] PCTin 2.147 1.193 0.722** 0.494** 0.568** 0.616** 1 0.821** 0.846**
[6] PCTout 2.998 0.873 0.629** 0.487** 0.403** 0.557** 0.821** 1 0.969**
[7] PCTtotal 2.856 0.878 0.705** 0.548** 0.469** 0.596** 0.846** 0.969** 1

Perceived competitive tension scale

Please tick the other airlines that you consider as rivals, according to the degree of rivalry, from the highest [5] to the lowest [1]. For airlines you do not consider as a rival, tick [0]
Airlines I do not see as a rival [0] I consider it as the least important rival [1] I consider it as a less important rival [2] I consider it as a moderately important rival [3] I consider it as an important rival [4] I consider it as the most important rival [5]
A
B
C

Variables of the study with their types and abbreviations

Variables Type of variable Abbreviation
Perceived competitive tension Dependent PCT
Market commonality Independent MC
Resource similarity Independent RS
Market concentration Independent MCT
Competitive asymmetry Independent CA

Results of regression analysis on determinants of competitive tension

Models
Variables 1 2 3
MC 9.211** 7.758** 8.923***
RS −0.872 0.963 0.932
MCT −3.377 −7.839** −8.248**
CA 0.004 −0.075 −0.242
Observations 42 42 42
R2 0.54 0.50 0.61
Adjusted R2 0.49 0.45 0.56
Durbin–Watson 2.024 2.208 1.710
Cronbach’s alpha 0.831

Number of domestic passengers carried and airplanes of airlines

Number of domestic passengers [number of airplanes]
2012 2013 2014 2015 2016 2017
AL1 671,861 460,730 655,625 828,892 841,486 Ceased***
[6] [6] [8] [8] [14] [4]
AL2 3,691,150 4,729,292 4,723,709 3,888,392 3,435,230 3,645,466
[15] [16] [18] [20] [25] [24]
AL3 5,282,311 6,272,085 6,098,701 6,265,720 6,138,954 4,817,484
[32] [23] [21] [28] [25] [24]
AL4 10,229,798 20,447,828 23,938,738 27,628,898 30,578,318 33,778,276
[40] [49] [55] [65] [78] [73]
AL5 4,739,717 4,162,862 4,395,227 5,178,940 5,077,130 5,391,148
[22] [19] [23] [54] [49] [52]
AL6 9,086,577 15,223,427 17,206,697 21,322,344 22,951,372 27,396,372
[18] [27] [26] [30] [29] [33]
AL7 21,228,489 24,837,184 28,315,313 26,300,437 27,287,325 29,874,443
[184] [200] [225] [258] [271] [260]
Total** 54,949,103 76,146,913 85,416,166 97,041,210 102,499,358 109,511,390
[337] [361] [401] [463] [491] [470]

Demographic information about the participants

Insider Outsider
Airline firms Airline employees Departments Number of participants
Code Number of participants Departments Number of participants
AL1 9 Cost control 24 Travel agency 45
AL2 15 Sales–marketing 8
AL3 13 Tariff planning 3
AL4 11 Revenue management 4 Airport 2
AL5 5 Station management 6
Ground operation 19 Other airlines 8
AL6 4 Operation control 4
Agreements management 1 News, Websites 2
AL7 24 Trade 3
Ticket sales 9

Codes given to airline firms

Codes used in descriptive statistics
AL1 Airline 1
AL2 Airline 2
AL3 Airline 3
AL4 Airline 4
AL5 Airline 5
AL6 Airline 6
AL7 Airline 7

Verification status of the hypotheses

Independent variable Dependent variable Hypotheses Accepted Rejected
Market commonality Perceived competitive tension Hypothesis 1 [H1] ✓
Resource similarity Perceived competitive tension Hypothesis 2 [H2] ✓
Market concentration Perceived competitive tension Hypothesis 3 [H3] ✓
Competitive asymmetry Perceived competitive tension Hypothesis 4 [H4] ✓
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Language:
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